Vol. 472 No. 2
22 Éamon Ó Cuív asked the Minister for Social Welfare whether it is intended to review the method of assessment of means for casual workers who claim unemployment assistance; and if he will make a statement on the matter. [20108/96]
The Programme, A Government of Renewal contains a commitment to tackle disincentives and eliminate obstacles to people taking up employment opportunities, in particular, atypical employment opportunities such as part-time, seasonal or casual work. In line with this commitment, I included a provision in this year's Social Welfare Act which is designed to simplify the system of assessment of earnings from employment for unemployment assistance purposes and thereby improve the incentive for unemployed people to take up casual and part-time work opportunities.
Under the new arrangements, which come into force this week, an unemployed person who works up to three days a week may, subject to the level of his or her earnings, qualify for the full rate of unemployment assistance for that week, including payment in respect of the days in the week on which the person worked. The improved arrangements provide that earnings will be assessed at 60 per cent. In addition, persons without children will be allowed a £10 disregard for each day worked, while the balance of earnings will be assessed at 60 per cent.
The current arrangements, which are now being replaced, provide that payment is only made in respect of the days in the week on which the person is unemployed, less one sixth of their weekly means for each day of unemployment. Claimants are allowed to earn up to £15 above the appropriate daily rate of unemployment assistance before being assessed with means. However, no payment is made in respect of days of employment, irrespective of the level of daily earnings.
By abolishing the disincentives associated with the current system, the improved measures will ensure that claimants have an incentive to work at all levels of earnings even where the level of pay is less than the rate of unemployment assistance. For example, a married person with two children who works for three days in a week and earns £60 will be better off by £28.70 under the new arrangements which will also make it easier for people to see clearly for themselves just how much better off they will be if they take up part-time or casual employment as opposed to claiming unemployment assistance.
